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Vehicles come and go from the front entrance of the Suncoast Casino, owned by Boyd Gaming.
Published Tuesday, March 2, 2010 | 6:52 a.m.
Updated Tuesday, March 2, 2010 | noon
Boyd Gaming Financial Information
| 4Q 2009 | 4Q 2008 | % Change | 3Q 2009 | |
|---|---|---|---|---|
| Revenue | $384.9 million | $422.6 million | -9% | $398.2 million |
| Net income | ($1 million) | ($220.8 million) | N/A | $6.3 million |
| Net income per share | (1 cent) | ($2.51) | N/A | 7 cents |
Boyd Gaming Corp. of Las Vegas narrowed its fourth quarter loss even as revenue fell across the board as the slow economy reduced spending at its hotels and casinos around the country.
Boyd said today it lost $1 million, or 1 cent per share, during the fourth quarter of 2009, compared to a loss in 2008's fourth quarter of $220.8 million, or $2.51 per share. Net revenue fell from $422.6 million to $384.9 million during the year-over-year period.
During a conference call with investors and analysts today, Boyd executives reaffirmed the company’s commitment to acquiring Station Casinos’ assets and discussed the company’s view of the current condition of the Las Vegas locals market.
“During the fourth quarter, the economy continued to be weak, unemployment remained high and consumers continued to be cautious with their discretionary spending,” Boyd Gaming President and CEO Keith Smith said. “Looking forward, however, we are seeing some signs that recovery is under way, despite the fact that the nation’s economic forecast remains uncertain.”
In Boyd’s locals segment, net revenue for the fourth quarter of 2009 was $155 million compared to $176.8 million during the same period of 2008. Earnings before interest, taxes, depreciation and amortization were $34.7 million, a 20.7 percent decrease from $43.8 million in the same quarter 2008.
Smith noted that such earnings in the locals market were up more than 10 percent from the third quarter -- the first sequential quarter-over-quarter increase in that market in 18 months.
Boyd Chief Operating Officer Paul Chakmak said the recent slight increase in visitors on the Strip has been beneficial to Boyd’s customers, many of whom are employed at businesses on the Strip.
“A significant portion of our customer base is tied either directly or indirectly to the economic vitality on the Strip. When the Strip regains its footing, the Las Vegas locals market will return as well,” Smith said.
In December, Boyd made an offer to purchase Station Casinos’ assets in an effort to expand its locals market. The offer was for $2.45 billion for the company’s 18 casinos and casino-hotels in Southern Nevada.
“This offer stands and we are actively pursuing these assets,” Smith said. “We believe we can offer the greatest possible value to the majority of Station’s creditors. There is no one who is in a better position to manage those assets properly.”
Smith noted that Station has asserted it might have an agreement with lenders related to four of its 18 properties (Red Rock Resort, Sunset Station, Boulder Station and Palace Station).
In the downtown Las Vegas market, Chakmak said visitation remained stable, but consumers continued to spend less.
Revenue fell to $58 million from $60.8 million during the year-over-year period. Earnings before interest, taxes, depreciation and amortization for the fourth quarter were $12.2 million, a 7.7 percent decrease from the $13.3 million reported in the fourth quarter of 2008.
In Boyd’s Midwest and Southern regions, revenue fell to $171.9 million from $185 million during the year-over-year period.
At its half-owned Borgata Hotel Casino & Spa in Atlantic City, revenue for the fourth quarter of 2009 was $175.4 million compared to $183.5 million during the same period of 2008. EBIDTA was flat at about $36 million for the quarter, but Chakmak said the company lost about $5 million because of winter storms on the East Coast.
The effect of weather already was felt during the first quarter of 2010 and Chakmak said the company expects that to be reflected in first quarter 2010 earnings.
Last month, MGM Mirage announced it was talking with its lenders and New Jersey regulators about putting its stake in the Borgata into a divestiture trust. New Jersey regulators have raised questions about Pansy Ho, MGM Mirage's joint venture partner in Macau.
“We hold a right of first refusal on any sale of MGM Mirage’s Borgata interest and we will monitor the divestiture process closely and act in the best interest of our company,” Smith said.
Smith said the company is still pleased with its 50 percent stake in the Borgata and it continues to be business as usual at the hotel-casino.
Sun reporter Steve Green contributed to this report.
Everyone keep patronizing The Orleans! It's the only reasonably fair deal around! Lets hope that Boyd gives up on the Stations purchase, and re-builds a nice mid level New Stardust on the old north strip property!
patronizing The Orleans?
Ha- only if you like playing on tighter machines....
Are there any casinos now that don't have tight machines?
Now hold on there logic_should_rule , last time I went over there I had a decent return, and the table games are waaay better minimums than on the strip. Yes they tightened their machines a litle more than a couple of years ago, but they are still better than the strip..
JLouise : Yes.. Indian Casinos in San Bernadino Ca. (San Manuel in San Berdoo, and Aqua Cailente in Palm Springs)
The orleans is a nice property and I enjoyed playing there when I lived in Las Vegas...however when the Boyd's decided to implode the Stardust, they really shot themselves in the foot. It was a great property that just needed some sprucing up. Now its an empty lot that does nothing but lose money for Boyd gaming. This is why managment is really the problem in Vegas not the people working for the casinos.
environprotector..I agree. I was at the Orleans in December. I had a excellent burger, basket of fries and a iced tea for what I believe was $3 (but I added in a tip)! A great deal and good food. I was thoroughly impressed. The employees were friendly and attentive as well. BTW, are you the one that suggested a while ago that BYD purchase the Fontainebleau, finish it and call it the new Stardust? I LOVED that idea! BYD probably could have done well with that concept.
American_Gaming_Guru :
I suggested it, as well as a guy from Switzerland named Boris R.
They should have never sold the Barbary Coast! I can't even imagine how much walk-thru traffic and $$$$ they gave up!
Barbary Coast (Bill's) has to be a 'per-square-foot' gold mine; Just like Slots-a-Fun is.
They didn't sell the Babary Coast, Boyd traded it to Harrahs for the land the Westward Ho was on and some property beside the Stardust.They traded 4.3 acres for 24 acres. At the time it seemed like a good deal for Boyd.
The Orleans is a dump. If you think slots are too tight try saving your money and not playing them. No charge for that advice. -Just sayin'
LVMD2020 :
How do you back up your claim that The Orleans is a dump? It's clean, the rooms are large and VERY clean. The casino and restaurants are clean and well appointed. The pool, spa, and exercise areas are all clean and well appointed. I think you must be thinking of another property.
Have you been to the Boyd properties. They are all dumps.
You don't "trade" a center Strip casino/hotel across the street from the Bellagio and Caesars' for vacant land. Whoever made that trade should have been fired. I was a BYD shareholder at the time and I said so at the time. Of course I'm just a "dumb" tourist so I was laughed at. I am not a BYD shareholder any longer though I have recently bought shares in MGM and LVS since I believe from my most recent trip two weeks ago that Vegas has bottomed and this summer should be phenomenal for the Strip!
spdijtt said : Have you been to the Boyd properties. They are all dumps.
The Orleans does NOT fall under this description. spdjitt is just downright wrong about this.
BushDepression said : You don't "trade" a center Strip casino/hotel across the street from the Bellagio and Caesars' for vacant land. Whoever made that trade should have been fired.
At the time property all along the strip both north and south was going for millions per acre. Boyd made the trade because they needed the lot next to the old Stardust property to complete their new Echelon project. Yes the Eschelon was a disaster, and yes they should never have torn down the beautiful Stardust Hotel, but that said The Orleans is a beautiful property and has value oriented offerings to tourists and locals.
I can tell you just how tight they are at Suncoast, but then I'll start grinding my teeth, thinking about how ripped off I got on Saturday.
Should've Could've.....
We all make right decisions looking at the past
There is no way these slots are going to be anything other then supertight until everyone stops playing them. It is as simple as that.
Ok, I played a $20 match play coupon at the Old(Gold) Coast blackjack a couple of months ago.
Before a card was dealt, the dealer called over the supervisor who gave me the third degree and really treated me like a potential criminal. It was disgusting. All this on a a frickin $20 bet.
Boyd--A real class outfit...NOT.
logic_should_rule :
You think YOU got crapped on? I will tell you a abbreviated little incident which happened to me in Laughlin at the Riverside Hotel/Casino :
Christmas Eve 2002 I spent the better part of the night playin slots in the high limit area. (They still used the big $5.00 tokens in those days) I kept playin, turning in my racks of fives until finally cashing out late night (was drinkin martini's BIG mistake) anyway crashed out with visions of jackpots in my head. The next late morning. i'm back in the high limit area playin the fives again when two menacing security guys come up behind me and tell me to cash out and come with them. I did so and was taken to a holding cell in the lower bowels of the Riverside basement and interrogated regarding a five hundred dollar short count by their cage girl the night before. They believed that she mistakenly overpaid me by five hundered dollars at one of my cash outs. Now they had video which was blurry and inconclusive as to what went down at her cage, and I had absolutely no idea if I was overpaid or not due probably to the martini's I was drinking that night. So I ended up giving them five hundred dollars just to get out of their holding cell. I contacted Gaming control who investigated and concluded they were right (yeah right..) and swore to never return to that dirt hole ever again. Actually I went back a year later and won a five thousand dollar jackpot just to get back at 'em. The moral of the story Don't drink and gamble..especially at Laughlin's Riverside. And, I'll bet that cashier lady had a great time blowin the five hundred she stole from her drawer that night and blamed it on me..
In a previous aricle I read that If Boyd aqurires Stations assets the Echelon project will be completly mothballed.This would not be good for the Las vegas Strip and the potential contractors that would complete it.Yes it is on hold and there is no way of knowing when it may restart back up but In the stages it is in now there would be no possibility of a potential buyer at all.What I do not understand is the inconsistant direction that Boyd Gamming wants to go.Boyd started moving into the locals market
years ago then moved into the Strip market and never completed their goals in the Strip market,Now they want to move back into the locals market where it is gravely suffering right now.
They start a project on the Strip and will abandon it to aquire Stations.The article stated it would be 10 years or longer before they could begin to look at a Echelon restart if they aquire Stations.The locals market really depends on how well the Strip is doing.Strip does well Locals do well.
I know that the Echelon project is a very large and expensive project but now construction costs are down and they could only complete in phases and probably do really well and help bring in more tourist.By the time Echelon's first phase was complete the economy should be better and Echelon has an idenity unlike City Center Which to me personally is kind of wierd.City Center has no marketing ability that I can see,Just a bunch of buildings.Do not get me wrong the buildings are big and look pretty cool from the outside but when I went in I just was not impressed at all.No distinct character at all
And I here the same thing from other people.
Echelon from what has been reported will have character and its own uniqueness to itself.
Las Vegas needs to find away to complete the Strip Casinos Echelon,Fountainbleau and start moving foward in helping the locals here with jobs.
I am just concerned of Boyd's wishey washey directions and if I was an investor in Boyd Gamming would be concerned.
Environprotector,
Did the security detain you in a room and how long.My next quesion to you is Did the local law athorities show up while you were being detained? How long did they detain you before you gave the the 500.00 dollars.If the local law enforcement never showed up.That was an unlawful detainment and you were held against your will.
That is classified as kidnapping.I know this is
Las Vegas and they still have the Wild west mentality but I will tell you that Unlawful detainment without law enforcement representation is a Federal offense and they could still be in alot of trouble today.
There is no statutory of limitations on kidnapping.If I was held for any period of time and no government law enforcement ever showed up
I would have done the same as you but as soon as I was released I would have called the Police and FBI and imediately filled charges against Riverside Resort and would have pressed for all tapes to be confiscated.The Gamming control board has no jurisdiction in unlawful detainment and kidnapping.If the tapes were inconculsive they were fuzzy they legally had no right to even approach you without a goverment law enforcement present since the detainment happened the next day or several hours later after you cashing out.Even if they over paid you I realy do not believe they have the right to lock you up.They can ask you to return the money
but that is all.You did not steal the money.
I once cashed my check at a bank in Tennessee and was overpaid by a couple hundred dollars through the drive through I had been cshing my checks their for about 2 years and pretty much new all the tellers.I trusted the tellers to be correct and put the envelope on the passenger seat and drove away.Got home went to put the money in my wallet and realized the overage.By then it was after the bank had closed so the next morning I went to the bank and went to the teller who had over paid me and asked her if she happened to really short on her drawer the day before and she said yes and asked why I was asking.She was a really nice older lady who I could tell needed her job so I told her that I wanted to talk to the branch manager.I told him that her mistake was being corrected and that she was a very nice friendly lady and did not want her to get into trouble and returned the money. Fortunately she did not lose her job but the manager was investigating the shortage and she could have lost her job.For the casino to acuse you and hold you against you will is unlawful. When the cashier made the mistake at that point it is between the casino and the cashier.She probably still got canned and you were nice enough to return the money when you really did not have to.I beleave you still have a case against them and if I were you would investigate you options.Never know you maybe the proud owner of Environprotector Casino and Resort Laughlin Nv LOL
rodtig :
Well I figure that winning that big jackpot a year later and walking the hell outta there with it was revenge enough, however, I probably should write a letter to someone in the state attorney's office and report the incident. The problem is that good 'ol Don Laughlin probably has friends in high places that I have no interest in finding out who they are if you know what I mean..
Joker's Wild and Eldorado are part of the Boyd Gaming Empire. Both of these sawdust joints are smoky and very run down. At JW I got sweated out of there after nice win at blackjack. Their sweaty PB's don't take kindly to big wins at BJ.
Based upon what I have heard Boyd is no longer making a serious play for Stations. Stations now has the ability to reorganize their debt and have their principals retain some ownership and managment/control of the new Stations entity with their lenders..... That is the way it should be..... Despite what posters have said about the Fertittas, the truth is that they did a remarkable job taking their dad's casino and developing that business into an enterprise of over a dozen casinos worth several billions of dollars and employing thousands of Las Vegans, which is a massive feat in any economy. The dire state of the economy caused the downfall of Stations balance sheet, not mismanagement. Expect a full rebound from the Fertittas and repositioning of their interest into a majority stake of the equity over the next ten years....and thats the way it should be....Las Vegans show some loyalty and appreciation for hard work and family legacy!
dgump must be a Fertitta under cover here ...
rodtig and environprotector: Gaming Control Enforcement Agents have jurisdiction over anything that happens in a casino whether it be the actions of the casino or the guests. They have a right and an obligation to enforce the "Moral Code of the Community" on the casino floor. Why in the world would they not act on something like this?
dgump: the Fertitta's problems are not entirely the economy. They made some mistakes that normally would have been easy to recover, but their timing was bad, and the economy made it tougher to recover from. All in all though I applaud the Fertitta brothers and their efforts. Looking forward to when Stations goes public again.
Oh and 2.5 billion for Stations? Really Boyd? You must be joking right? Anyone who thinks this is a serious offer, or anything other than a grab for part of Stations market share and some free advertisement needs to review the situation again.
The old Coast Casinos never would have been allowed to "buy" Station Casinos. Why then should Boyd be allowed to cement a permanent monopoly on local Las Vegas business?
Hello everyone, I am the granddaughter of Perry Whitt, the co-owner of Boyd Gaming. I don't really have a comment to say, but I am finding it interesting to read all of your comments.